Refinance or use own funds and talk to the bank?

Hello,

we have drawn down our full loan and are already repaying it. However, there are still invoices outstanding which I am paying with equity. This does not really pose too great difficulties for me since, so to speak, I have savings reserves. However, I am wondering whether this is the best option for me?
I estimate that around 15-25k EUR have accumulated, of which I have already paid quite a bit. Especially the outdoor facilities (which we are doing a lot of ourselves) have incurred higher material costs.
I have not yet spoken to the bank (direct bank). They only had the inspection carried out and then paid out the remaining sum (25k) one day later.
It is definitely the case that I more or less have to bring in equity because some things were more expensive or were simply not included in the loan right away.
1. Am I best off now just covering everything else out of my own pocket?
2. Or should I refinance part of it, although I actually have the money? The financing fits, but I would rather not increase my installment!

Should I inform the bank of any construction measures so that they might recognize that I am deploying additional equity here? Or do they assume that I am completing everything else with the remaining sum of 25k? So what if I needed 40k instead of 25k now? Would the bank somehow "acknowledge" this 15k in equity?

ps: Garage 9x6.5 flat roof, masonry, sloped insulation, plastered, floor slab, industrial floor is not available for 30k... (rather double that). :rolleyes:

If you need more money, additional financing will be necessary and you will (most likely) get the money. Your installment will be higher as a result, and the interest rate will be catastrophic. If you have equity, I would use it to pay the due invoices. That’s what you saved equity for :D

If you need more money, additional financing will be necessary and you will (most likely) get the money. Your installment will be higher because of this, the interest rate will be catastrophic. If you have equity, then I would use it to pay the due invoices. After all, you have saved up equity for that :D

yes, that is currently my approach. I just wanted to make sure that I am not forfeiting some advantage by not informing the bank. The thinking being "Oh, the customer is covering the additional costs (Corona, current world situation) and does not need further money. But he could have gotten cheap money from us or whatever."

Always use up your own capital first. Especially now, when loans are getting expensive again.

I personally also drained all accounts down to zero. There wasn't even 1000€ left as an emergency fund at times, but so what? Broken washing machine? That’s covered by current salary. A broken car would have been the only bad thing, but then you would have financed or leased it.

Hello,

I have already dealt with the topic, it is significantly easier and cheaper to use equity. Especially when inflation rises and so your equity loses purchasing power.

Regards

unless you want to diversify your 'fortune' and throw 60k into stocks whatever. Please consider this aspect